"Broadcom delivered record quarterly revenue and better than expected operating results," said Scott McGregor, Broadcom's President and Chief Executive Officer. "Our strong performance was driven by the Broadband and Connectivity business and diligent expense management. Longer term, the company's renewed focus on its core businesses is expected to produce improved margins and cash flows, enabling increased capital return."

Net revenue for the third quarter of 2014 was $2.26 billion. This represents an increase of 10.7% compared with the $2.04 billion reported for the second quarter of 2014 and an increase of 5.3% compared with the $2.15 billion reported for the third quarter of 2013. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of 2014 was $98 million, or $0.16 per share (diluted), compared with GAAP net loss of $1 million, or $0.00 per share (basic and diluted), for the second quarter of 2014 and GAAP net income of $316 million, or $0.55 per share (basic and diluted), for the third quarter of 2013.

GAAP net income for the third quarter of 2014 included charges for restructuring costs related to Broadcom's decision to exit the cellular baseband business totaling $114 million, or $0.19 per share, and additional charges for the impairment of purchased intangible assets of $200 million, or $0.33 per share. GAAP net loss for the second quarter of 2014 included charges for the impairment of long-lived assets, restructuring costs and an inventory write-down related to Broadcom's decision to exit the cellular baseband business totaling $187 million, or $0.32 per share, and additional charges for the impairment of other purchased intangible assets, settlement costs and other gains of $48 million, or $0.08 per share. GAAP net income for the third quarter of 2013 included a one-time, non-recurring settlement gain of $75 million, a charitable contribution to Broadcom Foundation of $25 million and restructuring costs of $12 million, for a total positive impact to GAAP net income per share of $0.07.

In addition to GAAP results, Broadcom reports adjusted net income and adjusted net income per share, referred to respectively as "non-GAAP net income" and "non-GAAP diluted net income per share." A discussion of Broadcom's use of these and other non-GAAP financial measures is set forth below. Reconciliations of GAAP to non-GAAP financial measures for the three months ended September 30, 2014, June 30, 2014 and September 30, 2013, and the nine months ended September 30, 2014 and 2013 appear in the financial statements portion of this release under the heading "Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments."

Non-GAAP net income for the third quarter of 2014 was $569 million, or $0.91 per share (diluted), compared with non-GAAP net income of $406 million, or $0.65 per share (diluted), for the second quarter of 2014 and non-GAAP net income of $460 million, or $0.76 per share (diluted), for the third quarter of 2013.

Conference Call Information

As previously announced, Broadcom will conduct a conference call with analysts and investors to discuss its third quarter 2014 financial results and current financial prospects today at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time). The company will broadcast the conference call via webcast over the Internet. To listen to the webcast, or to view the financial and other statistical information required by Securities and Exchange Commission (SEC) Regulation G, please visit the Investors section of the Broadcom website at
www.broadcom.com/investors. The webcast will be recorded and available for replay until 11:59 p.m. Pacific Time on Saturday, November 22, 2014.

The financial results included in this release are unaudited. The audited financial statements of the company for the year ended December 31, 2013 are included in Broadcom's Annual Report on Form 10-K, filed with the SEC on January 30, 2014 .